(25 Marks) Adjustments and Additional Information QUESTION 6 FINANCIAL STATEMENT AND DISPOSAL OF ASSET A. Rent for March 2017 has been received in advance. 6.1 STATEMENT OF COMPREHENSIVE INCOME (20 marks) Use the following information extracted from the accounting records of IBHUBESI TRADING to prepare the Statement of Comprehensive Income for the year ended 28 February 2017. B. Write off a debtor's outstanding account of R430 as irrecoverable. C. Adjust the provision for bad debts to 5% of trade debtors. IBHUBESI TRADING PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2017 D. Building maintenance costing R5 000 was erroneously debited to the Land and Buildings account. Correct this error. CREDIT DEBIT Statement of financial position accounts section Capital Drawings Land and Buildings Vehicles Equipment Accumulated Depreciation on Vehicles Accumulated Depreciation on Equipment Fixed Deposit : B. Bank [ 9% p.a. ] Trading Inventory Debtors' Control Provision for bad debts 614 000 E. Rates includes a payment of R12 000 made to the municipality for the period 01 July 2016 to 30 June 2017. 48 000 485 000 210 000 150 000 F. The proprietor used R615 from the cash float for personal use. 120 000 84 000 G. Interest on loan has been paid up to 31 December 2016. Provide for the outstanding amount. 45 000 88 660 45 130 H. Update the interest on fixed deposit. I. Stocktaking on 28 February 2017 revealed the following stock on hand:. 2 450 Trading Inventory, R80 060. Stationery, R540. Bank Cash Float Creditors Control Loan : K. Bank [ 15 % p.a. 37 525 2 200 42 200 75 000 J. Depreciation is provided as follows: On equipment at 10% p.a.on cost. NB: New equipment costing R20 000 was purchased on 01 September 2016 and was properly recorded. On vehicles at 20% p.a. on the diminishing balance method. Nominal accounts section 501 905 Sales Cost of sales Sales retum Salaries and wages I debts Stationery 136 000 5 000 130 500 4 200 6 840 (5m 6.2. DISPOSAL OF FIXED ASSET Use the information supplied below, by Cosmic Stores, to prepare the Fixed Assets Realisation Account. Rates 14 490 Vehicle expense Maintenance Telephone Electricity and water Bank charges Insurance Interest on loan Interest on fixed deposit Rent income 30 000 5410 10 160 15 180 1 860 19 470 9 375 INFORMATION On 30 October 2016, the business sold an old equipment costing R60 000 for R3 600 cash. The accumulated depreciation on this equipment was R50 400 on 01 March 2016. Equipment is depreciated at 14%p.a. on cost. 3 375 57 070 1 500 000 1 500 000